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SOCIOLOGIST: CRACKDOWN ON SHADY DEALINGS IN ARMENIA MAKES SMALL BUSINESSES MORE VULNERABLE
/ARKA/
JANUARY 12, 2012
YEREVAN
YEREVAN, January 12. /ARKA/. Crackdown on shady dealings in Armenia
makes small businesses more vulnerable, Aharon Adibekyan, director
of Sociometer center, said on Thursday.
He told journalists that shadow economy constitutes 20 to 25% of GDP,
and small and medium-size enterprises total 132,923 and make up 97.7%
of all the commercial legal entities and individual entrepreneurs
registered in Armenia.
The results of the studies conducted by the center in 2011 show
that outflow of the population, the falling birth rate, unfavorable
environment for investments and the struggle against shadow economy
that strikes hard at small businesses are among the country's biggest
troubles.
"Small businesses are defenseless in our country, while everywhere
in the world they are protected very well and ensure ¾ or 85% of
jobs," Adibekyan said. "If a business has only one source of income,
it is now taxable at all. In the entire world, this is a usual way
for reducing unemployment."
He voiced criticism at a campaign launched in 2011 by Yerevan
municipality against street kiosks.
"Small kiosks were being closed for tax evasion, but if they paid
taxes, they would face bankruptcy," he said. "That's why they should
be relocated or dismantled very carefully."
The city authorities' campaign against small retail outlets having
their contract terms expired has prompted vigorous protests. Owners
of kiosks, human rights activists and politicians protested against it.
/ARKA/
JANUARY 12, 2012
YEREVAN
YEREVAN, January 12. /ARKA/. Crackdown on shady dealings in Armenia
makes small businesses more vulnerable, Aharon Adibekyan, director
of Sociometer center, said on Thursday.
He told journalists that shadow economy constitutes 20 to 25% of GDP,
and small and medium-size enterprises total 132,923 and make up 97.7%
of all the commercial legal entities and individual entrepreneurs
registered in Armenia.
The results of the studies conducted by the center in 2011 show
that outflow of the population, the falling birth rate, unfavorable
environment for investments and the struggle against shadow economy
that strikes hard at small businesses are among the country's biggest
troubles.
"Small businesses are defenseless in our country, while everywhere
in the world they are protected very well and ensure ¾ or 85% of
jobs," Adibekyan said. "If a business has only one source of income,
it is now taxable at all. In the entire world, this is a usual way
for reducing unemployment."
He voiced criticism at a campaign launched in 2011 by Yerevan
municipality against street kiosks.
"Small kiosks were being closed for tax evasion, but if they paid
taxes, they would face bankruptcy," he said. "That's why they should
be relocated or dismantled very carefully."
The city authorities' campaign against small retail outlets having
their contract terms expired has prompted vigorous protests. Owners
of kiosks, human rights activists and politicians protested against it.